It hits a five-day high above 1.3200

• GBP/USD is nearing 1.3239 with the potential to test the YTD high at 1.3266 and March 2022 highs.
• Bulls bought dip to 1.3001 fuel rally to current levels.
• Failure at 1.3200 could see a pullback towards 1.3150, with further downside risks at 1.3100 and 1.3044.

Sterling bounced back in early trading during the North American session against the greenback, posting gains of over 0.60% to hit a five-day high of 1.3214. At the time of writing, GBP/USD is trading at 1.3199.

GBP/USD Price: Technical Insights

GBP/USD rose sharply as bullish momentum picked up as shown by the Relative Strength Index (RSI). Additionally, bulls who bought the dip to 1.3001 lifted spot prices at the current exchange rate.

However, GBP/USD remains shy of testing the September 6 high of 1.3239. In this outcome, the next resistance level would be the year-to-date (YTD) high at 1.3266. Once broken, the daily high of March 23, 2022 will be in play at 1.3298 before the pair reaches the March 1, 2022 high of 1.3437.

Conversely, if GBP/USD is below 1.3200, this could exacerbate a retest of the 1.3100 figure. But first, sellers need to challenge 1.3150. Further losses are at 1.3044 and the July 17 high has become support.

GBP/USD Price Action – Daily Chart